Working Together to Ensure Assessments are Paid:
Collection Efforts Associations Can Take Before Referring a Matter to Collection By Erin A. Maloney, Esq. Fiore, Racobs & Powers
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2015 AWARD WINNER
ssociations rely upon payment of assessments by all of their members to meet the financial obligations imposed upon them by their governing documents, and by California law. Unfortunately, many association members do not understand that they are harming their entire community by failing to pay their assessments, and often see their homeowners association assessments as one of the first bills to stop paying when they encounter financial difficulties. Many owners place a much higher priority on keeping their premium cable channels than they do on paying their assessments. 6 |
CONNECT MAGAZINE • ISSUE FOUR 2019
Most community association professionals and volunteer directors see assessment collection as a necessary, but unpleasant task. They meet their duties regarding collection efforts, with their primary focus usually being on deciding the remedy to be utilized -- judicial foreclosure, nonjudicial foreclosure and small claims being the most commonly used options. Attention is then usually turned to which provider will assist the association in its collection efforts, and on sending the matter off to that provider. Often, directors have overlooked their opportunities to take an active role in collection efforts to assist their association before referring a collection matter out. Perhaps, associations may benefit from redirecting their focus in the early stages of delinquencies. By employing preliminary techniques before referring a matter to a collection professional, associations may reduce their overall delinquency rates, and costs associated with collection efforts. Four important steps are frequently given inadequate attention that every association should consider. The first step that every association should take in the collection process is to actively communicate with its members regarding the importance of paying assessments, and the consequences if assessments are not paid. Far too many owners are unclear on what assessments are. Some owners believe that they are paying “dues� to use the pool, and that they need not pay if they do not swim. Others think assessments are a tax included in the impounds paid
